On Friday (August 30), Bitcoin continued to hover below $60,000, but technical analysis showed that after $4.8 billion was liquidated, the price of the currency is expected to challenge $70,000. Former US President and Republican presidential candidate Donald Trump released the content of the new encryption project World Liberty, and the US House of Representatives plans to hold several cryptocurrency hearings in September to discuss issues such as decentralized finance (DeFi) and the enforcement of the US Securities and Exchange Commission (SEC).
According to CoinDesk, a person familiar with the matter revealed that the U.S. House Financial Services Committee plans to hold a series of cryptocurrency hearings in September to delve into several aspects of the industry, including DeFi, the U.S. Securities and Exchange Commission's supervision of digital asset businesses and the impact of the "pig killing" scam.
The committee's chairman, Republican Representative Patrick McHenry, who is retiring at the end of the year, said one of his top priorities for the remainder of his term will be passing a cryptocurrency regulation bill.
The first hearing on September 10 will be a subcommittee review of DeFi, where some proposed rules from multiple federal agencies, including the U.S. Securities and Exchange Commission and the Internal Revenue Service (IRS), could have a life-or-death impact on DeFi projects.
Two hearings will be held on September 18, one on the SEC’s enforcement practices and the impact of the “pig-killing” scam. The full committee hearing on September 23 may have the greatest impact on cryptocurrencies, when the SEC will testify.
The House committee will reportedly seek testimony from SEC Chairman Gary Gensler and other commissioners at the same hearing, a highly unusual practice.
Meanwhile, lawmakers are negotiating legislation that would seek to limit the agency’s digital asset jurisdiction in order to give the Commodity Futures Trading Commission (CFTC) a more prominent role.
According to a video on Twitter (now renamed X), Trump posted content related to the DeFi project World Liberty Financial (WLFI). In the video, Trump said he had developed a plan to make the United States "the crypto capital of the planet."
He also stressed that some people are trying to stifle the development of the crypto industry and bankrupt investors, but he promised to never let that happen.
On Thursday, Eric Trump, Trump's son and executive vice president of the Trump Organization, announced on Twitter the official launch of the cryptocurrency project WLFI, and tagged the official Twitter account @worldlibertyfi. He declared that "a new era of finance has arrived."
Bitcoin Technical Analysis
CoinGape said on Thursday that the bullish outlook for Bitcoin prices ignored the widespread uncertainty among investors, which continues despite the Federal Reserve's promise of its first rate cut this year in September. Higher support levels will encourage more traders to consider going long in Bitcoin, aiming for a big rally over the weekend.
Bitcoin price confirmed the $58,000 support level to absorb selling pressure and prevent losses from extending to $55,000. Traders and whales seized the earliest opportunity to buy on dips, driving a trend reversal in Bitcoin price above $60,000.
Bitcoin is hovering at $60,980, ready for the next leg up to $64,000. Unfortunately, with the roller coaster of unexpected volatility, liquidations are on the rise. Liquidations in August alone reached a staggering $4.8 billion and are likely to continue to grow, making Bitcoin trading more difficult.
According to Santiment data, investors with 1,000 to 10,000 bitcoins in their wallets currently hold 20.23% of the circulating supply, or about 4.8 million bitcoins. The increase in whale holdings indicates that the market is optimistic about the price of Bitcoin. When whales increase their holdings, it indicates that they believe the price may rise. As whales buy more tokens, this increase in holdings will put upward pressure on the price.
Santiment noted that the supply of Bitcoin on exchanges plummeted to 1.92 million, a key bullish indicator for Bitcoin prices, especially as global markets face a liquidity crunch. This shows that investors are holding Bitcoin instead of selling it, indicating confidence in the future value of Bitcoin. Reduced supply leads to increased demand, which historically pushes up prices.
From a technical perspective, Bitcoin must hold $60,000 to eliminate all fears of a further pullback and encourage more traders to buy in anticipation of a move to $62,000. Above support, traders will be watching for the 200-day exponential moving average (EMA) and 50-day EMA confluence resistance at $61,193. A subsequent breakout above $64,000 will increase the likelihood of Bitcoin price retesting $66,000 before September. The relative strength index (RSI) and moving average convergence divergence (MACD) are giving buy signals in short-term ranges such as the four-hour chart.
Instead, the Bitcoin price prediction requires traders to remain vigilant and prepare for a break below the dollar cost average (DCA) at $60,000. The $58,000 support level will come into play again to prevent Bitcoin from falling further, but it is too early to rule out a deeper pullback to $55,000.
